Reference no: EM132843396

1. One advantage of buying an existing business is:

a. equipment is installed and production capacity is known

b. the opportunity to participate in a national advertising campaign

c. easy implementation of innovations and changes from past policies

d. you always get the best location

2. The inventory in an existing business:

a. is usually stated honestly and does not need independent auditing

b. usually appreciate over time, making the business a bargain

c. is always current and salable

d. needs to be checked for age and salability

3. Accounts receivable in an existing business:

a. are rarely worth their face value

b. appreciate over time due to interest and penalties

c. are not a significant consideration when buying an existing business

d. unlike inventory, are often worth their face value

4. Once an entrepreneur has evaluated him/herself, the next step in the acquisition process would be to:

a. explore financing options

b. work on a smooth transition

c. evaluate the physical condition of the business

d. develop a list of criteria for an ideal business

5. In a business sale, the seller is looking to:

a. minimize the amount of cash paid up front

b. maximize the cash he/she gets from the sale

c. get the business at the lowest price possible

d. negotiate favorable payment terms, preferably over time

Attachment:- Unit 2-Small business management.rar